China’s Silver Export Controls Spark Alarm Among U.S. Manufacturers

China tightens the screws on silver exports—and U.S. factories are scrambling.

The Supply Chain Squeeze

New export controls from Beijing aren't just paperwork. They're a direct chokehold on a critical industrial metal. Silver flows to global manufacturers are slowing, and American production lines are feeling the pinch first.

Beyond Bullion

Forget jewelry and coins. This is about semiconductors, solar panels, and advanced electronics. Modern manufacturing runs on silver, and the U.S. doesn't mine enough to feed its own factories. That dependency just became a glaring vulnerability.

The Ripple Effect

Supply shocks trigger price spikes. Price spikes inflate production costs. Those costs get passed down the line—from circuit boards to finished consumer goods. It's basic economics, until it's not, and some CFO's bonus gets caught in the crossfire.

One nation's trade policy is another's manufacturing crisis. As supply chains reconfigure, the real cost won't be measured in dollars per ounce, but in delayed products and missed market windows. Another reminder that in global trade, the most valuable metal is sometimes leverage.

Precious metals surge as investors flee the weakening U.S. dollar

A November flash survey by the EU Chamber of Commerce in China found that most members have already been, or expect to be, affected by these export restrictions.

In November, the U.S. added silver to its nationally designated list of critical minerals, highlighting its importance in electrical circuits, batteries, solar cells, and anti-bacterial medical instruments. Another U.S. analysis stated that China was one of the world’s largest producers of silver in 2024 and also home to one of the largest silver reserves.

China exported more than 4,600 tons of silver in the first 11 months of the year, significantly exceeding the roughly 220 tons of imports during that period, according to Wind Information, which cited official figures.

The restrictions on silver come just as interest in the metal has increased in recent weeks. Two Chinese firms reached out to Canada-based Kuya Silver on Friday, offering to buy physical silver at about $8 more than the market price at the time, CEO David Stein confirmed. According to him, one company was a manufacturer while the other was a large trading firm.

Stein added that an Indian buyer approached Kuya on Monday with an offer $10 above the market price.

Separately, a column in The Free Press on Tuesday by George Mason University economics professor Tyler Cowen suggested that the surge in silver and gold prices reflects investors moving away from the U.S. dollar.

He called the surge in prices “a flashing warning for the [U.S.] economy.” The U.S. dollar index has plunged by almost 9.5% in 2025, its worst performance in 8 years.

Global buyers offer premiums amid growing silver demand

In comparison, silver has more than doubled in price this year, on track for its strongest annual gain since 1979, when it soared nearly 470%. Prices pulled back on Wednesday after hitting a record above $80 an ounce earlier in the week, with spot silver last trading around $73.

Gold has risen over 60% so far in 2025, also positioning itself for its best year since 1979. Bitcoin, often promoted as a gold alternative, traded NEAR $88,000 Wednesday morning Beijing time, down more than 5% for the year.

If you're reading this, you’re already ahead. Stay there with our newsletter.